LONDON: Barratt Redrow plc reported solid trading results for its first quarter, driven by consistent homebuyer demand and the ongoing integration of Barratt and Redrow.
The homebuilder posted a net private reservation rate of 0.621 for the 13 weeks ending March 30, a 1.6% increase from the previous year’s combined performance. Including multi-unit sales, the rate declined by 3.1%, reflecting lower private rental sector activity.
Chief Executive David Thomas said the integration of Barratt and Redrow is nearly complete, with cost and revenue synergies progressing well.
“We are making good progress on unlocking the full potential of our enhanced land position,” Thomas said, citing government-led planning reforms as a key driver.
During the period, Barratt Redrow closed or began closing nine divisional offices and submitted planning applications for revenue synergy sites. The group reaffirmed its guidance of 16,800 to 17,200 home completions for the full year, including joint ventures.
The company retained its five-star homebuilder status for the 16th consecutive year, emphasizing its focus on quality and customer service.
Despite ongoing macroeconomic uncertainty, Thomas expressed confidence in the national commitment to accelerating homebuilding, citing Barratt Redrow’s scale and industry partnerships as advantages.
At the end of March, total forward sales were valued at £3.14 billion, down 10.1% from a year ago. The company reported net cash of approximately £508 million, with expectations of £0.5 billion to £0.6 billion by year-end.
A £50 million share buyback program initiated in February has seen £17 million completed to date.
Looking ahead, the company remains focused on maximizing its land portfolio and capturing growth opportunities in the evolving housing market.